AMP News Business

Murphy Oil Has $40 Million Profit in 2019 First Quarter

oil

During the first quarter of 2019, Murphy Oil Corporation accrued a net income of $40 million, according to figures released during an investor announcement on May 2.

The company’s adjusted net income for the first quarter was $27 million. This total excludes its discontinued operations. For example, Murphy recently divested its Malaysian assets, which will now be considered “discontinued operations,” according to a Murphy press release.

For the first quarter, Murphy’s EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) was $311 million or $23 per barrel of oil equivalent (BOE) sold. The company’s EBITDAX (adjusted earnings before interest, taxes, depreciation, amortization and exploration expenses) was $330 million or $24.43 per BOE sold.

As reported on AMP earlier this year, Murphy sold its assets in Malaysia for $2.127 billion. Murphy expects to gain roughly $900 million to $1 billion on the transaction, according to the report.

“The first quarter was an extremely busy quarter at Murphy. We demonstrated again that we are proven deal-makers by successfully executing agreements to divest our Malaysia assets, which are becoming gassier, followed shortly thereafter by an agreement to re-deploy the expected proceeds by acquiring oil-weighted, tax-advantaged Gulf of Mexico assets further enhancing our ability to generate cash flow,” Roger W. Jenkins, President and Chief Executive Officer said.

Also during the first quarter, the company secured operation approval for its Gulf of Mexico assets which had been acquired from Petrobras America Inc.

The sale of the Malaysian assets along with two Gulf of Mexico acquisitions are part of a company initiative to concentrate Murphy’s efforts in the Western hemisphere, according to Jenkins. “Over the past seven months Murphy has undertaken three major transactions as part of the strategic transformation to focus our company primarily in the western hemisphere with oil-weighted growth that can generate significant after tax cash flow for many years. Viewed in combination, our sale of Malaysia along with the purchase of two Gulf of Mexico assets illustrates very compelling metrics across all fronts. We look forward to closing the transactions during the second quarter and executing on our new long range plan,” he said.

After the end of the first quarter, Murphy Oil also successfully drilled in an exploration well in the Cuu Long Basin in Vietnam.

READ MORE: Murphy Oil Acquires Deep Water Gulf of Mexico Assets

Leave a Comment